Hotel Revenue Glossary · Financial

Management Fee

The fee paid under a hotel management agreement. Base, incentive, owner-priority, exclusion, accounting, term, and performance-test provisions vary; use the executed agreement rather than generic percentage bands.

Why it matters: Management fees create alignment between operators and owners. The incentive fee structure means management companies directly benefit from revenue management performance — outperforming the threshold generates additional fee income for the operator.

All glossary terms NOI (Net Operating Income) Franchise Fee Owner's Priority (Owner's Return)